ArmInfo. The total net profit of Armenian insurance companies in the first half of 2017 dropped 51.6% year-on-year (against growth of 74% a year earlier) to 1.3 billion AMD or $ 2.6 million. According to the Ranking of Armenian insurance companies prepared by NA ArmInfo, the deterioration in the annual dynamics was caused by a sharp acceleration of the upward trend of insurance claims from 0.7% to 30.5% with a continuing low growth rate of insurance premiums - 4.7% against 4.2% a year earlier. In the annual breakdown (I half-year of 2017 to the first half of the year 2016), profit loss was observed for all six insurance companies, with RESO being the most significant - by 2.2 times - with the departure from plus to minus.
Only for the II quarter net profit of insurers increased by 44.6% (against 0.5% growth a year earlier), which is due to a slowdown in the rate of decline in premiums (from 32.6% to 22.8%) against the backdrop of accelerating the decline in the volume of reimbursements (from 7.1% to 10.2%). Moreover, in the quarterly analysis, two companies managed to get out of the profit loss (growth of 2.4-3.2 times), two companies significantly increased their profit (by 61-93%), and only two companies reduced their profits (by 34-43 %).
The first place in terms of net profit for the first half-year is held by Rosgosstrakh Armenia Insurance Company - 518.4 million AMD (the annual decline is 56.7%). In second place is SC Nairi Insurance with a profit of 307.4 million AMD (annual decline of 27.9%). TOP-3 is closed by IC "INGO Armenia" - 249.2 million AMD (annual decline by 52.4%). Then comes Armenia Insurance, with a profit of 230.6 million (annual decline of 0.2%), Insurance Company Sil Insurance with a profit of 3.5 million (annual decline of 91.6%). The list closes with a minus indicator of IC "RESO" - 39.7 million AMD (annual decline of 2.2 times), having moved from profit to loss.
The total volume of insurance premiums for the first half of 2017, according to the reports of the IC on IFRS standards, amounted to 16.6 billion AMD ($ 34.5 million), and insurance indemnities - 8.1 billion ($ 16.9 million). Insurance premiums totaled 7.2bln AMD for the II quarter, and reimbursements - 3.8bln AMD. As a result, the aggregate profit on the insurance line fell by 12.1% year-on-year to 8.4 billion ($ 17.6 million), demonstrating a more impressive decline in the quarterly section - by 33.4% to 3.4 billion, at that time as a year earlier increasing dynamics was in positive territory - 6.6%, and quarterly in a more significant negative - 45.8%. The highest profit on the insurance line was fixed in the first half of 2017 from IC INGO Armenia - 2.4 billion (annual growth of 12.9%, quarterly decline of 34.5%), the second position was taken by Rosgosstrakh Armenia - (The annual decline is 22.3%, the quarterly decline is 56.7%), the third position is held by Nairi Insurance - 1.6 bln (annual decline of 25.8%, quarter growth of 7.7%). "Sil Insurance", "RESO" and "Armenia Insurance" continue to occupy the fourth, fifth and sixth positions - 924.5 million, 745.8 million and 485.1 million AMD, respectively, of which only "RESO" provided a quarterly growth of this indicator, thereby slowing down the rate of the annual recession, while the "Sil Insurance" and "Armenia Insurance" quarterly decline triggered an annual decline.
To note, there are 6 companies operating in the Armenian insurance market, out of which there are 17 insurance classes, except for railway transport insurance and insurance of judicial and extrajudicial expenses. For 16 classes, INGO Armenia Insurance Company (the only one operating in the water transport insurance category) was licensed, Rosgosstrakh Armenia Insurance Company was licensed for 15 classes (the only one operating in the credit risk insurance class). (The calculated exchange rate of the AMD to the USD as of 30.06.17 was 480.47 AMD/USD1).